NEW Children\'s Fitness Tax Credit

The Children’s Fitness Tax Credit became effective January 1, 2007. This tax credit will allow parents to claim up to $500 of fees for physical activity programs for each child under 16 years of age. The total of $500 per child can be claimed by one parent or split between parents. The credit is calculated by multiplying the eligible amount by the lowest marginal tax rate (15.5% in 2007). The information below can be found on the Canada Revenue Agency website at www.cra-arc.gc.ca/fitness/ Their toll free number is 1 800 622 6232.

The eligible program must run for a minimum of eight weeks, with a minimum session of one session per week, or a camp that runs for at least five-consecutive days. The program must be supervised, suitable for children and include a significant amount of physical activity.

The year in which the tax credit can be claimed is determined by the date when the fees are paid, not when the activity takes place. This means that the tax credit for an activity that has registration in one calendar year and commences or continues into another calendar year is claimed in the year in which the registration fee is paid.

Please maintain all receipts for your records. You will not be required to submit the receipts when your tax return is filed, but they must be provided if you are asked to verify your claim. CRA has recommended that receipts be kept for six years.